Re:LLMs Are Cheap
by pr337h4m on Monday June 09, 2025 @11:59AM
(#44225826)
Uber and Lyft rely on network effects, which do not exist in any meaningful sense for LLM API providers.
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Brand is huge in every market. It's hard to get people to visit your website at all. People know about OpenAI, and look it up.
No network effect + already profitable.
Not at all like Uber, let it go
Incoherent response.
Yeah, that's definitely a factor in the attempt to "undercut and outlast". I guess I have two defenses: firstly, network effects might not be crucial, it might be enough for there to be a small cost to changing provider; secondly, I imagine the providers are finding ways to use network effects to bolster adoption - e.g. "Find me a party date when all my friends are free, book the catering and message them with invites".